MTN records loss in wholesale business as SMS revenue plunges again

MTN Nigeria generated N1.34 trillion last year, recording a growth when compared to its 2019 earnings, but analysis of the telecoms financial statement showed MTN Nigeria recorded loss in some revenue segments.

Ripples Nigeria gathered that across three business segments of MTN Nigeria, its wholesale business unit underperformed last year, while customer and enterprise business units gained during the same period.

The wholesale business generate revenue from customers that buy products of MTN Nigeria in bulk with the intention to re-sell these products (mobile or fixed) to their external clients.

MTN Nigeria recorded 9.3 percent decline in revenue generated by its wholesale business when the N41.90 billion grossed in 2020 full year is compared to the N46.01 billion generated in 2019 FY.

READ ALSO: Despite COVID-19, MTN Nigeria records 15.1% revenue increase in 2020

Its customer business rose to N1.16 trillion in 2020, above the N991.05 billion generated in 2019, while enterprise business escaped the drop zone to settle at N134.81 billion in 2020, surpassing the N132.76 billion recorded in 2019 Full Year.

Meanwhile, a further breakdown of the company’s revenue source showed that earnings on SMS fell in 2020 after hitting N12.33 billion, against the N13.50 billion it generated in 2019.

Voice revenue, which remains MTN Nigeria’s dependable revenue, rose to N766.38 billion last year, surpassing the N725.44 billion it recorded from voice revenue during the same period in 2019.

Data revenue, which recorded the highest growth in the full year of 2020, climbed N332.37 billion, settling above N219.39 billion MTN Nigeria grossed from data during the corresponding period in 2019.

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